Sarah secured a bank loan of $185,000 for the purchase of a house. The mortgage is...

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Finance

Sarah secured a bank loan of $185,000 for the purchase of ahouse. The mortgage is to be amortized through monthly payments fora term of 15 years, with an interest rate of 3%/year compoundedmonthly on the unpaid balance. She plans to sell her house in 10years. How much will Sarah still owe on her house at that time?(Round your answer to the nearest cent.)
$____

Answer & Explanation Solved by verified expert

4.0 Ratings (520 Votes)

Ans $ 71100.12

P =	Regular Payments
PV =	Loan Amount
r =	rate of interest
n =	no of periods

P =	r (PV)
	1 - (1 + r )^-n

P =	(3%/12)*185000
	1 - (1 / (1 + 3%/12)^180))

P =	462.5
	0.362013679

P =	1277.58

	Beginning Balance	Interest	Principal	Ending Balance
1	$185,000.00	$462.50	$815.08	$184,184.92
2	$184,184.92	$460.46	$817.11	$183,367.81
3	$183,367.81	$458.42	$819.16	$182,548.65
4	$182,548.65	$456.37	$821.20	$181,727.45
5	$181,727.45	$454.32	$823.26	$180,904.19
6	$180,904.19	$452.26	$825.32	$180,078.88
7	$180,078.88	$450.20	$827.38	$179,251.50
8	$179,251.50	$448.13	$829.45	$178,422.05
9	$178,422.05	$446.06	$831.52	$177,590.53
10	$177,590.53	$443.98	$833.60	$176,756.93
11	$176,756.93	$441.89	$835.68	$175,921.25
12	$175,921.25	$439.80	$837.77	$175,083.47
Year #1 End
13	$175,083.47	$437.71	$839.87	$174,243.61
14	$174,243.61	$435.61	$841.97	$173,401.64
15	$173,401.64	$433.50	$844.07	$172,557.57
16	$172,557.57	$431.39	$846.18	$171,711.38
17	$171,711.38	$429.28	$848.30	$170,863.09
18	$170,863.09	$427.16	$850.42	$170,012.67
19	$170,012.67	$425.03	$852.54	$169,160.12
20	$169,160.12	$422.90	$854.68	$168,305.45
21	$168,305.45	$420.76	$856.81	$167,448.64
22	$167,448.64	$418.62	$858.95	$166,589.68
23	$166,589.68	$416.47	$861.10	$165,728.58
24	$165,728.58	$414.32	$863.25	$164,865.33
Year #2 End
25	$164,865.33	$412.16	$865.41	$163,999.91
26	$163,999.91	$410.00	$867.58	$163,132.34
27	$163,132.34	$407.83	$869.75	$162,262.59
28	$162,262.59	$405.66	$871.92	$161,390.67
29	$161,390.67	$403.48	$874.10	$160,516.57
30	$160,516.57	$401.29	$876.28	$159,640.29
31	$159,640.29	$399.10	$878.48	$158,761.81
32	$158,761.81	$396.90	$880.67	$157,881.14
33	$157,881.14	$394.70	$882.87	$156,998.27
34	$156,998.27	$392.50	$885.08	$156,113.19
35	$156,113.19	$390.28	$887.29	$155,225.89
36	$155,225.89	$388.06	$889.51	$154,336.38
Year #3 End
37	$154,336.38	$385.84	$891.74	$153,444.65
38	$153,444.65	$383.61	$893.96	$152,550.68
39	$152,550.68	$381.38	$896.20	$151,654.48
40	$151,654.48	$379.14	$898.44	$150,756.04
41	$150,756.04	$376.89	$900.69	$149,855.36
42	$149,855.36	$374.64	$902.94	$148,952.42
43	$148,952.42	$372.38	$905.19	$148,047.23
44	$148,047.23	$370.12	$907.46	$147,139.77
45	$147,139.77	$367.85	$909.73	$146,230.04
46	$146,230.04	$365.58	$912.00	$145,318.04
47	$145,318.04	$363.30	$914.28	$144,403.76
48	$144,403.76	$361.01	$916.57	$143,487.19
Year #4 End
49	$143,487.19	$358.72	$918.86	$142,568.33
50	$142,568.33	$356.42	$921.16	$141,647.18
51	$141,647.18	$354.12	$923.46	$140,723.72
52	$140,723.72	$351.81	$925.77	$139,797.95
53	$139,797.95	$349.49	$928.08	$138,869.87
54	$138,869.87	$347.17	$930.40	$137,939.47
55	$137,939.47	$344.85	$932.73	$137,006.74
56	$137,006.74	$342.52	$935.06	$136,071.69
57	$136,071.69	$340.18	$937.40	$135,134.29
58	$135,134.29	$337.84	$939.74	$134,194.55
59	$134,194.55	$335.49	$942.09	$133,252.46
60	$133,252.46	$333.13	$944.44	$132,308.01
Year #5 End
61	$132,308.01	$330.77	$946.81	$131,361.21
62	$131,361.21	$328.40	$949.17	$130,412.03
63	$130,412.03	$326.03	$951.55	$129,460.49
64	$129,460.49	$323.65	$953.92	$128,506.56
65	$128,506.56	$321.27	$956.31	$127,550.25
66	$127,550.25	$318.88	$958.70	$126,591.55
67	$126,591.55	$316.48	$961.10	$125,630.46
68	$125,630.46	$314.08	$963.50	$124,666.96
69	$124,666.96	$311.67	$965.91	$123,701.05
70	$123,701.05	$309.25	$968.32	$122,732.72
71	$122,732.72	$306.83	$970.74	$121,761.98
72	$121,761.98	$304.40	$973.17	$120,788.81
Year #6 End
73	$120,788.81	$301.97	$975.60	$119,813.21
74	$119,813.21	$299.53	$978.04	$118,835.16
75	$118,835.16	$297.09	$980.49	$117,854.67
76	$117,854.67	$294.64	$982.94	$116,871.74
77	$116,871.74	$292.18	$985.40	$115,886.34
78	$115,886.34	$289.72	$987.86	$114,898.48
79	$114,898.48	$287.25	$990.33	$113,908.15
80	$113,908.15	$284.77	$992.81	$112,915.34
81	$112,915.34	$282.29	$995.29	$111,920.06
82	$111,920.06	$279.80	$997.78	$110,922.28
83	$110,922.28	$277.31	$1,000.27	$109,922.01
84	$109,922.01	$274.81	$1,002.77	$108,919.24
Year #7 End
85	$108,919.24	$272.30	$1,005.28	$107,913.96
86	$107,913.96	$269.78	$1,007.79	$106,906.17
87	$106,906.17	$267.27	$1,010.31	$105,895.86
88	$105,895.86	$264.74	$1,012.84	$104,883.02
89	$104,883.02	$262.21	$1,015.37	$103,867.65
90	$103,867.65	$259.67	$1,017.91	$102,849.75
91	$102,849.75	$257.12	$1,020.45	$101,829.29
92	$101,829.29	$254.57	$1,023.00	$100,806.29
93	$100,806.29	$252.02	$1,025.56	$99,780.73
94	$99,780.73	$249.45	$1,028.12	$98,752.61
95	$98,752.61	$246.88	$1,030.69	$97,721.91
96	$97,721.91	$244.30	$1,033.27	$96,688.64
Year #8 End
97	$96,688.64	$241.72	$1,035.85	$95,652.79
98	$95,652.79	$239.13	$1,038.44	$94,614.34
99	$94,614.34	$236.54	$1,041.04	$93,573.30
100	$93,573.30	$233.93	$1,043.64	$92,529.66
101	$92,529.66	$231.32	$1,046.25	$91,483.41
102	$91,483.41	$228.71	$1,048.87	$90,434.54
103	$90,434.54	$226.09	$1,051.49	$89,383.05
104	$89,383.05	$223.46	$1,054.12	$88,328.93
105	$88,328.93	$220.82	$1,056.75	$87,272.18
106	$87,272.18	$218.18	$1,059.40	$86,212.78
107	$86,212.78	$215.53	$1,062.04	$85,150.74
108	$85,150.74	$212.88	$1,064.70	$84,086.04
Year #9 End
109	$84,086.04	$210.22	$1,067.36	$83,018.68
110	$83,018.68	$207.55	$1,070.03	$81,948.65
111	$81,948.65	$204.87	$1,072.70	$80,875.95
112	$80,875.95	$202.19	$1,075.39	$79,800.56
113	$79,800.56	$199.50	$1,078.07	$78,722.48
114	$78,722.48	$196.81	$1,080.77	$77,641.71
115	$77,641.71	$194.10	$1,083.47	$76,558.24
116	$76,558.24	$191.40	$1,086.18	$75,472.06
117	$75,472.06	$188.68	$1,088.90	$74,383.17
118	$74,383.17	$185.96	$1,091.62	$73,291.55
119	$73,291.55	$183.23	$1,094.35	$72,197.20
120	$72,197.20	$180.49	$1,097.08	$71,100.12

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